How to Compare Business Electricity Quotes in Australia

You've received a few electricity quotes. The rates look different, the formats are inconsistent, and it's not obvious which one is actually cheaper. This is one of the most common frustrations business owners face when their contract comes up for renewal.

Why Quotes Are Hard to Compare

Retailers don't use a standard format. One might show a single all-in rate. Another might itemise every charge separately. Some include GST, others don't. Some quotes are for 12 months, others for 36.

Before you can compare anything, you need to understand what type of customer you are and what type of quote you're actually looking at.

Two Types of Business Electricity Customers

Small market (SME) bundled

If your business uses less than 100 MWh per year (the threshold varies slightly by state and network), you're likely on a bundled or "small market" contract. This means the retailer wraps all charges (energy, network, environmental levies) into a single rate. You pay one usage charge (c/kWh) and a daily supply charge.

Large market (C&I) unbundled

If your business uses more than 100 MWh per year, you're likely in the large market (also called commercial and industrial, or C&I). Retailers quote the energy component only. Network charges, environmental levies, loss factors, and metering are billed separately. They're set by third parties and outside the retailer's control.

This distinction matters because you can't compare a bundled SME rate to an unbundled C&I rate at face value. They're measuring different things.

Compare on Energy Only

Whether you're SME or C&I, the cleanest way to compare quotes is on the energy component only.

For SME customers, the bundled rate includes non-energy charges, but those charges are the same regardless of which retailer you choose. The only thing the retailer meaningfully controls is the energy portion. So if you're comparing two bundled SME offers, focus on the energy rate.

For C&I customers, the quotes should already show energy only. Network and other pass-through costs are separate and will be identical across all offers, so again, compare on energy.

This gives you a clean, apples-to-apples comparison between retailers.

Time of Use: Don't Overlook This

This is where a lot of business owners get caught out. Most commercial electricity is priced on a time of use (TOU) basis. That means you pay different rates depending on when you use electricity, typically split into peak, shoulder, and off-peak windows.

If Retailer A has a cheaper peak rate but a more expensive off-peak rate than Retailer B, which one is cheaper for your business? It depends entirely on when your business uses electricity.

To compare properly, you need to apply each retailer's rates to your actual usage profile, your split of peak, shoulder, and off-peak consumption. This information is on your current invoice or interval data report.

A quote with a lower peak rate isn't automatically the better deal if most of your load runs off-peak. Always run the numbers against your actual usage, not just the headline rate.

Other Things to Check Before You Sign

GST Is the quoted rate inc or ex GST?

Contract length A 12-month offer and a 36-month offer at the same rate are not equivalent.

Stepped vs flat rates Some contracts have rates that change each year (stepped). Others hold a flat rate for the full term. Make sure you're comparing the right period.

Offer expiry Retailer offers expire, sometimes within days. If you're comparing multiple quotes, check they're all still valid.

Auto-rollover What happens when the contract ends? Many businesses end up on expensive default rates simply because their contract expired without action. Check the rollover terms.

The Cheapest Rate Isn't Always the Cheapest Bill

For C&I customers especially, the energy rate is only part of the story. Network charges (fixed daily charges, volumetric charges, and demand charges) often exceed the energy charge itself. These aren't controlled by the retailer, but they're worth understanding because the right contract structure can still influence how exposed you are to them.

For SME customers, the same principle applies. Two bundled quotes might show similar rates, but the TOU split and daily supply charge can make a material difference to your actual spend.

Not Sure How Your Quotes Stack Up?

Send us your current electricity bill and we'll review it at no cost. We'll identify whether you're on the right type of contract, what your current rates look like, and whether there's a better deal available.